Retirement & Pension Plan
Retirement is always visualized as golden years of one's life where you just want to sit back with regular flow of income to live an independent life. Retirement Planning ensures you have enough money to spend on everyday necessities and medical emergencies after you retire.
Investing in a Retirement Policy is crucial for 3 reasons
- Helps you live carefree post-retirement while you pursue a hobby or travel aroud the world
- Makes you independent & reduces dependency on family members
- With medical expenses rising considerably, securing yourself for any medical emergency during old age is essential.
Types Of Retirement Plan
1. Deferred Annuity
This pension plan allows you to pay premium in instalments or in lump sum. No tax is levied until withdrawal and Pension starts at the end of term.
2. Immediate Annuity
You can avail immediate Pension and tax benefits on payment of lump sum amount at the start of policy.
3. With Cover and Without Cover Pension
Under "with cover" plan, the nominee gets lump sum amount on death of policy holder, unlike in "without cover" pension plan where only corpus is paid.
4. Annuity Certain
Annuity is paid to the insured for a specific term as decided by him and on his death, it is paid to his nominee.
5. Period Certain Annuity
A fixed sum is paid to the insured for a specific term, e.g 5 or 30 years which is paid to his beneficiary on death.
6. Life Annuity
A series of payment is made to the policyholder until death, which is paid to his spouse on death in case 'with spouse' option is selected.
7. National Pension Scheme
This scheme by the government allows you to withdraw 60% on retirement and balance 40% is used for purchase of annuity
Features & Benefits
Below are the features & benefits of Retirement Plan
- "With Cover" pension plan offer a lump sum amount on maturity that can be used for your retirement goals.
- Under "Without Cover" pension scheme, the beneficiary is paid corpus amount accumulated until death of policy holder.
- Retirement investment provide regular income to you in old age and sum assured to your dependants after death.
- The "Vesting Age" determines age to start receiving pension and is generally around 40 years of age for most policies.
- "Payment period" determines the time when you start receiving your pension amount.
- You can avail tax benefits under the Income Tax Act, 1961 on your investment.
- Retirement policy give you the freedom to choose portfolio depending on your risk taking appetite.
The below eligibility can vary a little as per the banks policies
||Min 30 yrs
||Max 60 yrs
|Age At Maturity
||Min 40 yrs
|Minimum Premium Amount
||As per the bank
Below are some exclusions to your retirement investment plans. However, these can differ a little for different banks.
- In case of suicide by the insurer within 1 year of the policy then the insurance will be void.
- Misrepresentation of age. However, this does not entirely nullify the insurance, your insurance will be cleared w.r.t to your appropriate age with some damages included.
- Misrepresentation of facts like health issues and others can nullify your insurance. However this is valid within a certain time frame usually within 2 years, after which the company cannot contest this claim.
Claim Process: Procedure & Documents
- Identity Proof documents
- Bank details with passbook and cancelled cheque
- Valid copy of the policy document
- Valid copy of death certificate issued by an appropriate authority
- Valid copy of Post Mortem report in case of unnatural death
- Valid copy of FIR
- Attested copies of medical records in case of health
- Get in touch with your advisor and file your claim
- Submission of duly signed completed claim form
- Submission of necessary documents
- Once the claim is approved, your insurance amount will be disbursed usually within one month.